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Due to negligence and lack of oversight, investor confidence in the Iraqi stock market declined
The Iraqi Stock Exchange is considered one of the weakest markets in the world
August 4, 2024 Last updated: August 4, 2024
Independent/- The Iraq Stock Exchange is suffering from major challenges as a result of government negligence, widespread corruption, ongoing favoritism, mismanagement, and the absence of effective oversight, which leads to deteriorating economic performance and a lack of confidence among large segments of investors.
It is noted that many companies hold their general assembly meetings irregularly, and for periods that may extend to three or even five years, and these meetings are held in distant places such as the far north or the far south, even though the headquarters of these companies are located in Baghdad.
In the same context, investor Muhammad Fadel Al-Jubouri stressed that these rare meetings and the geographical distance pose a major challenge for investors who find it difficult to obtain sufficient information about companies’ activity.
He added that these practices not only contribute to weakening investor confidence, but also reinforce the climate of corruption and favoritism within the market, as these remote meetings are used as a means to avoid accountability and effective monitoring.
Al-Jubouri explained that there are many companies that blatantly ignore shareholders’ rights by holding their general body meetings in distant areas, forcing shareholders to travel long distances or give up their right to effective participation.
He stressed that these violations are not just regulatory problems, but rather are legal violations that conflict with the rights of shareholders and violate the laws of the Iraqi financial market.
He stressed that there is an urgent need to reform the situation and strictly implement the laws to ensure the transparency and fairness of the market.
Al-Jubouri pointed out that the report of the Independent Press Agency on the conditions of the Iraqi stock market shed light on this issue, which prompted him to send a letter disclosing his observations and personal experiences.
He said that the report highlighted many of the problems and challenges facing the market, including corruption, nepotism, lack of transparency, and lack of effective oversight. Al-Jubouri called on the competent authorities to take immediate measures to address these practices and guarantee the rights of investors.
Al-Jubouri stressed that solutions begin with activating oversight and strictly enforcing laws. Regulatory and government authorities must work to enhance market transparency and ensure that meetings of companies’ general bodies are available to all investors in appropriate places and times.
He also called for strengthening the role of regulatory authorities in monitoring the financial activities of companies and holding violators accountable to ensure market fairness.
Al-Jubouri stressed the need for the government and regulatory authorities to intervene to ensure better regulation of the market, and to activate laws that guarantee investors’ rights and enhance a climate of transparency and accountability.
He concluded his speech by saying that the future of the financial market in Iraq depends on taking decisive measures to combat corruption and nepotism, and ensuring a fair and sustainable investment environment.
Al-Jubouri stressed that enhancing investor confidence depends on the transparency of companies and their commitment to laws, and that reform measures must also include improving the market infrastructure and providing accurate information in a timely manner.
He called for the cooperation of all concerned parties, including the government, regulatory authorities, investors, and companies, to ensure a stable and sustainable investment environment that benefits the Iraqi economy as a whole.
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The Iraqi Stock Exchange is considered one of the weakest markets in the world
August 4, 2024 Last updated: August 4, 2024
Independent/- The Iraq Stock Exchange is suffering from major challenges as a result of government negligence, widespread corruption, ongoing favoritism, mismanagement, and the absence of effective oversight, which leads to deteriorating economic performance and a lack of confidence among large segments of investors.
It is noted that many companies hold their general assembly meetings irregularly, and for periods that may extend to three or even five years, and these meetings are held in distant places such as the far north or the far south, even though the headquarters of these companies are located in Baghdad.
In the same context, investor Muhammad Fadel Al-Jubouri stressed that these rare meetings and the geographical distance pose a major challenge for investors who find it difficult to obtain sufficient information about companies’ activity.
He added that these practices not only contribute to weakening investor confidence, but also reinforce the climate of corruption and favoritism within the market, as these remote meetings are used as a means to avoid accountability and effective monitoring.
Al-Jubouri explained that there are many companies that blatantly ignore shareholders’ rights by holding their general body meetings in distant areas, forcing shareholders to travel long distances or give up their right to effective participation.
He stressed that these violations are not just regulatory problems, but rather are legal violations that conflict with the rights of shareholders and violate the laws of the Iraqi financial market.
He stressed that there is an urgent need to reform the situation and strictly implement the laws to ensure the transparency and fairness of the market.
Al-Jubouri pointed out that the report of the Independent Press Agency on the conditions of the Iraqi stock market shed light on this issue, which prompted him to send a letter disclosing his observations and personal experiences.
He said that the report highlighted many of the problems and challenges facing the market, including corruption, nepotism, lack of transparency, and lack of effective oversight. Al-Jubouri called on the competent authorities to take immediate measures to address these practices and guarantee the rights of investors.
Al-Jubouri stressed that solutions begin with activating oversight and strictly enforcing laws. Regulatory and government authorities must work to enhance market transparency and ensure that meetings of companies’ general bodies are available to all investors in appropriate places and times.
He also called for strengthening the role of regulatory authorities in monitoring the financial activities of companies and holding violators accountable to ensure market fairness.
Al-Jubouri stressed the need for the government and regulatory authorities to intervene to ensure better regulation of the market, and to activate laws that guarantee investors’ rights and enhance a climate of transparency and accountability.
He concluded his speech by saying that the future of the financial market in Iraq depends on taking decisive measures to combat corruption and nepotism, and ensuring a fair and sustainable investment environment.
Al-Jubouri stressed that enhancing investor confidence depends on the transparency of companies and their commitment to laws, and that reform measures must also include improving the market infrastructure and providing accurate information in a timely manner.
He called for the cooperation of all concerned parties, including the government, regulatory authorities, investors, and companies, to ensure a stable and sustainable investment environment that benefits the Iraqi economy as a whole.
[You must be registered and logged in to see this link.]
